This week, Croda International (Croda), a speciality chemicals company, and Iberchem, a leading global fragrances and flavours company, announced their future together.
Croda has agreed to acquire Iberchem, which is headquartered in Spain, for a total consideration of €820m on a debt-free, cash-free basis. Iberchem has been majority owned by French investment firm, Eurazeo since 2017.
The complementary operations of the two companies, combined with an ambitious growth synergy programme, is set to create additional value for customers. Many customers require both ingredients and fragrances and can expect to benefit from collaborative thinking and full formulation development made possible by this acquisition.
Strong synergies and complementary activities
Iberchem will remain an independent entity with extensive support from Croda, continuing to serve its customers while collaborating with Croda teams on cross selling and other revenue synergy opportunities.
“We are pleased to join the Croda family and therefore strengthen our business offering,” says Ramón Fernández, CEO of Iberchem. “Not only are Croda and Iberchem’s activities complementary, but also both companies have grown and expanded their activities on a similar vision and core values. The preservation of the Iberchem identity, the reason why our customers place their trust in us on a daily basis, was of paramount importance for the management team, and we are pleased how understanding Croda has been on this aspect. We are delighted to embark on this exciting new adventure.”
A good fit for both businesses
Steve Foots, CEO of Croda, comments: “We have known the Iberchem Group’s senior team and their business for many years. This fabulous organisation stands out from its peers with its strong exposure to emerging markets, extensive portfolio of F&F products well placed to adapt to sustainability trends, strong R&D capability and its consistent track record of year-on-year growth over the last decade. By bringing our businesses together, we are creating a new, full-service offering to our customers in consumer care markets and a compelling platform from which to grow the combined business in the years ahead. We look forward to welcoming our new colleagues to Croda and leveraging our respective networks and expertise.”